Schedule K-1 Beneficiary's Share of Income, Deductions, Credits, etc.

[SVWatsonGarner]

I received a Schedule K-1 in 2019 for my share of an estate and entered the information on my 2019 Turbo-Tax taxes. Because I had a large deduction in box 11, Part III, I was informed by the estate that I would be able to take a $3,000 deduction each year for seven years. In reviewing my tax returns for 2019 and 2020, I don't think I entered the information on the K-1 worksheet correctly because I am not finding the deductions on my 2019 or 2020 tax forms. How can I get help to know if I am doing this right before I file another year?

[Anonymous_]

I am going to presume the amount on Line 11 of your K-1 had either a C or a D code.

If so, that would be a net capital loss which could be used to offset capital gains plus an additional $3,000 per year of all of your other income. The net result is that you might have used the entire net loss in 2019 and/or 2020.

Otherwise, check your Schedule D.

[ThomasM125]

You need to look on your K-1 from 2019 to clarify what the deduction was for so we can help you report it.

[Anonymous_]

There are only six deductions on Line 11 (A-F) and only two of those would have a $3,000 per year limitation.

Therefore, this is either a short-term capital loss carryover or a long-term capital loss carryover.